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  3. 10. w limited had the following deferred tax balan

10. W Limited had the following deferred tax balances at reporting date: * Deferred tax...

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Accounting

10. W Limited had the following deferred tax balances at reporting date: * Deferred tax assets $60,000 * Deferred tax liabilities $33,000 * Effective from the first day of the next financial period, the company rate of income tax was reduced from 30% to 25%. The adjustment to income tax expense to recognise the impact of the tax rate change is: A) DR $4 500. B) CR $4 500. C) DR $1 350. D) CR $1 350. E) No entry is required

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